To match analysis INDIA-MICROFINANCE/

by David Week on 26 May 2011

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Shobha Vakade, 28, who took a loan of rupees 18,000 ($400) from a micro finance company to start her own business, strings beads into necklaces outside her house in a slum in Mumbai October 26, 2010. India’s microfinance industry, which surged to prominence when George Soros-backed SKS Microfinance raised $358 million in an IPO, faces a regulatory clampdown that could erode profits and hurt growth. Reports of dozens of suicides by poor borrowers in the southern state of Andhra Pradesh, the hub of India’s microfinance sector, prompted the state to enact an rules against aggressive recovery practices by lenders who make loans that average about $150 to poor customers at interest rates that can top 30 percent. Picture taken October 26, 2010. To match analysis INDIA-MICROFINANCE/ REUTERS/Danish Siddiqui (INDIA – Tags: SOCIETY BUSINESS)